The shell is still in the first floor.

In recent years, several first-hand projects have changed hands with the company’s equity transfer. However, the Government has stated that the project is still a first-hand property. If it has not been occupied or rented for more than six months in the past year, it still needs to levy a vacant tax.

In recent years, many new discs have changed hands through the company’s equity transfer method (or sell shells), which can save time for unit-by-unit sales. Secondly, for buyers, it can also save the stamp duty cost of buying a flat. If it is also purchased in the name of the company, the cost of hot taxation can reach 30% of the property price.

Market sees equity transfer cases

For example, Wang Dengcheng has purchased the whole building of Ma Tau Kok Causeway for $1.3 billion and is now being converted into a high-end elderly serviced residential use. Another Guangzhou Finance Group Ding Long Group or related persons purchased about 13 villas in Ting Kau Yuet Bay, Tsuen Wan for about $1 billion. .

In the end, should such a property resold by selling the shell be a first-hand or second-hand property? If it is the former and is vacant for a period of time, there is an opportunity to impose a vacant tax. The Government has responded that the vacancy tax is levied in the form of additional rates by amending the Ratings Ordinance (Cap. 116). The developer has to report to the Government on the use of the flats one year after the project has been approved for occupation. If there is no residence or rental in the past more than 6 months, additional rates will be imposed. If the developer transfers the entire project to the third party buyer in the form of company equity, the project remains a first-hand property and depends on the occupancy of the flat. The situation is subject to additional rates.